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foot on the brake

Here the image of the American economic slowdown, given by Brad Stesti:

We see that the incoming flows of private capital (green) and outgoing ( yellow) fell before exports (blue) and imports (dark blue).

On this second graph, we see that net private capital flows have increased dramatically, which simply reflects the fetching of the USA dollars previously invested by Americans abroad.

Comment: we reported a few weeks ago the monetarist analysis of Scott Summer, who defends the opposite assumption that the economic crisis has preceded and caused the financial crisis: [ Depression for Dummies: "The Chuck Norris Federal Reserve "]

Summer defended the policy of monetary expansion of Greenspan and Bernanke (The last two Governors of the Federal Reserve): interest rate floor for Greenspan, Bernanke for mass printing. According

Summer should have been even more monetary expansion. With this graph Stetser, this theory takes for his rank, and "Austrians" (supporters of the monetary tightening) can once again rest on their laurels immaculate.

The problem is that if the Austrians are right, we are globally very very very're screwed ...

America capitalist puts his foot on the brake and turns in on itself, which is much worse for the global economy that all risks of protectionism, real or imagined, agitated by the G20 as a scarecrow.

For the brave of you, the rest of the article is frankly blow Stetser: [Follow the Money: "Charting financière de-globalization: private capital flows are falling Faster Than trade flows"]

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Rate Of Respiration Higher In Mammal Or Reptile

The musical chairs of deflation

Ambrose Evans-Pritchard did not mince words and the picture he gives of deflation in the world is appalling:

"Beware Switzerland, it turns into deflation in the wake of Japan "
[The Telegraph: Ambrose Evans-Pritchard:" Swiss Slide Into The Next Chapter deflation signals cette overall crisis "]

summarize: after Japan, Switzerland is experiencing negative inflation above 1%, so that Philipp Hildebrand, a Governor of the Swiss National Bank, described the situation ' extremely worrying.

It speaks to intervene to artificially lower the price of Swiss French, and therein lies the systemic risk mentioned in March, that of a war of devaluations:
[The Crisis in Dummies " Switzerland-cons attack deflation and the credit freeze "]

Evans-Pritchard believes that China, Korea, Singapore and Sweden, could initiate the ping-pong hell. And that Britain and the U.S. has already begun, as a side effect of their policy of quantitative easing to counter deflation. But these two, unlike the other candidates for devaluation, are not comfortable sitting on excess cash reserves and a trade surplus ...

The West got rid of much of its losses by devaluing its currency to the detriment of the yen. The Japanese have now returned the ball, and deflation could very well choke off the recovery in the bud ...

Comment: While the G20 is a celebration and awards prance is always a mess behind the scenes of the new world disorder.
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When the horns of info attack the G20 ...

... it is also for Dummies, but it's much funnier than my endless ranting. Unless it is even sadder ... (Thank you Axel)

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The biggest heist in history


The biggest heist in history continues before our eyes:

- Amnesty institutions Banking has been signed by the G20, since it can from today assess the toxic assets at the price desired by management.
[pauljorion.com François Leclerc: " In Wonderland accounting "]

- The resurgence of U.S. bank results in the first quarter comes from the percolation of aid provided to AIG by public funds, and we must solve the resumption of dummy indices.

- Scapegoats (hedge funds, Golden parachutes) are murdered in public, while raising goats resumed with a vengeance: for example, the bailout of Dexia and Fortis happening now by the grant, state funds, FSA and Dexia, vehicles designed specifically to offshore tax abuse and crammed with toxic assets.
[The Crisis for Dummies: "The garbage Lippens the proper care of the taxpayer "]

- The funny thing is the measure, announced by drum beating Sarkozy and constition to "list the paradise tax. Is it a blacklist or a business directory?
[Le Monde: " list of tax havens and elsewhere "]

everyone is not fooled, but it's hard to see his opinions in the current wave of enthusiasm smug: [The Depression for Dummies: "When the G20 plays referee Monopoly"]

Clearly, the speech of 22 March Maystadt was promoting the robbery and announced the implementation that we are witnessing today [The Crisis for Dummies: Maystadt " We are perhaps not after what we must discover at Fortis or Dexia. "]

The worst is that my gut feeling me said that the robbery never walk only half: we will avoid the clash of funding problems for banks and states, but the engine of growth may well fail: lack of transparency will significantly slow investment, the point of seizing the economy seriously.

(thank you to BA and to Jack Rabbit)

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When the G20 plays Monopoly


On the forums of the Echo, the worst often rubs the worst, but this time we found the best: the commentary called " talkingminds "(it's a nickname) on the announcement of the Recovery Plan G20:

Even knowledgeable, obviously some people seem unable to accept the reality of the situation [...] If

to inject enough money that nobody has to restart economy and advance the purchasing power and quality of life for everyone, why the heck is limited to 1 trillion ... inject 1,000 trillion, better give a check for one million euros to everyone so we can go to shop and revive the economy.

Take a game of Monopoly. Put a player that makes the bank. Distribute money to players starting as a credit to be repaid with interest of 10% per round tray.
Players are allowed to go into debt without limit (which is more or less the same as at present).

I'll bet that by the end of the game, all players will ruined and they have had to put all assets accumulated in the bank mortgage banker and find the owner of any gaming Planteau

Why? Because the interests that the players had to pay were never injected into the game!

You got it now or is it hopeless?

[Echo: " A turning point for global economic recovery (Obama) " ]

Frankly, talkingminds is hopeless ... but that does not prevent you from having damn right!

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